August 8, 2006
To: Motive’s Worldwide Customers and Partners
From: Alfred Mockett, Chairman and Chief Executive Officer
I am extremely pleased to announce the appointment of three seasoned industry executives to the positions of chief operating officer, chief financial officer and general counsel at Motive.
Each of these individuals brings extensive experience in telecommunications and software, and a proven track record for shaping, restructuring and growing successful technology companies with a demonstrated ability to deliver sustained shareholder value. They are:
- Rick Hanna, who brings to Motive 28 years of experience in telecommunications and related technology fields, has been named chief operating officer, filling a vacancy in the company’s senior management team.
- Mike Fitzpatrick, who has 25 years of experience in software, computer hardware, computer services and Internet startups, has been appointed chief financial officer effective as of the departure of April Downing, whose resignation as the company’s current chief accounting officer and acting chief financial officer will take effect upon completion of Motive’s restatement.
- Jack Greenberg, whose career comprises more than 20 years in the telecommunications and IT industries, will become general counsel.
In addition to executive appointments, I am also pleased about Motive’s achievements for the first half of 2006. Ongoing customer wins, product successes and channel expansion continue to prove that we are on the right track with our business strategy and have remained sharply focused on operational execution and delivering value to customers.
However, there are still challenges ahead. We must complete our restatement, which is expected to be announced by the end of the third quarter. In addition, Motive continues to be too dependent on ‘lumpy’ cash flow derived from large transactions, making quarterly cash-flow performance highly variable. Through investments in our new business model, channel strategy and development of intellectual property, we are addressing these issues which I am confident will be resolved in the months and quarters ahead.
In sum, I am optimistic about the future. Motive is operationally sound and we have the people to meet our objectives. To that end, I look forward to sharing more successes with you in the months ahead.
If you would like to receive more information or speak with me directly, please don’t hesitate to call me at 512-531-2424.
Thank you for your continued support.
Sincerely,
Alfred Mockett
Chairman and CEO
Motive, Inc.
